Construction Contractor – Managerial accounting For which of the following businesses would the job order cost system be appropriate? ?

For which of the following businesses would the job order cost system be appropriate?
a.        Meat processor
b.        Automobile manufacturer
c.        Oil refinery
d.        Construction contractor

Answer d.

Every project that a construction contractor undertakes is different, so it is appropriate for the contractor to assign costs to each job. The other three types of firms are producing many identical units of their product, so process costing is more appropriate for them.

A,B C are Process cost systems.

Answer is D

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